Mozambique: Oil and Gas revenues to transform economy if well managed

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Mozambique: Oil and Gas revenues to transform economy if well managed

2:33 CAT | 16 Jul 2019

File photo: Lusa

The secretary general of the Berne Union, a leading global export credit and investment insurance industry association, has told Lusa that Mozambique’s gas could change the country, but warned that revenues could not be squandered.

“There are high expectations for Mozambique in the oil and gas sector, particularly offshore, which has the potential to ensure rapid economic growth, but only if it is well managed,” Vinco David said on the sidelines of a seminar recently organised by Credit Insurance Company (COSEC) to celebrate 50 years of activity in Lisbon.

“Mozambique has already experienced poor management of development aid and export revenues from aluminium, and the hope is that the country’s governance has improved, so that future revenues are put to good use and not wasted, as was the case previously,” the secretary-general of the Berne Union said.

The Berne Union is the leading association of export credit insurance agencies, its 85 members including financial institutions and export insurance agencies insuring insured the equivalent of 13% of world trade last year, worth USS$2.5 billion dollars.

Members of the Union, one of the most comprehensive networks of international business activity, exchange information at many levels, from the macroeconomic level to the individual level.
“At the micro-economic level, members exchange information about individual companies. This is clearly non-disclose-able: it is confidential information, but it serves as a warning sign if a company is not paying its debts, with all other members being immediately notified,” David explained.

Mozambique will be one of the world’s largest exporters of liquefied natural gas when megaprojects launched in the north of the country, which have the potential to radically transform the country’s economy, become operational in the middle of the next decade.

Source: Lusa